The success of any company, not only depends on a single entity but it involves the efforts of all the employers working in the company. Thus, ESOPs can act as a tool for wealth creation for employees whose efforts have acted as a building block in the respective company’s growth.
Well, ESOP is abbreviated as ‘Employment Stock Ownership Plan’. Herein, the employer hands over some of the companies’ stocks to their employees at a minimal cost. These stocks can be kept in a trust fund or maybe a vault. The employers can have access to those ESOPs only when the employer provides the options for the same or in cases wherein the employee is leaving or retiring from the institution.
It provides a two-way benefit to both the employee as well as the employer. Firstly, it helps in building trust between the two. Secondly, it helps in enhancing the performance of the company. Thirdly, it increases the value of the company’s shares, once the stockholders (employees) are involved. Lastly, it helps in solving the hubbub of providing incentives.
In this 21st century, wherein wealth has become the need and greed of every individual, learning the best way to grow your wealth can be none other than the stocks of the company where you are working. But the problem arises when the ESOPs of the company are handed over to the employee from the employer, chances are there that the employee might flee from the company and sell those ESOP, or they might withdraw/sell the ESOP which might lead to the value denomination of the stocks.
Thus, to avoid all these scenarios Digital Escrow services act as a safety in disguise. Digital Escrow services act as a third-party agent which is like a safety vault wherein both the employer as well as the employee can agree on a set of agreements. These agreements once met will then allow the employee to sell the stocks and meanwhile, the agreement’s period is being full-filled the value of those stocks would shoot up leading to twin profits for both the employee and the employer. This would henceforth, lead towards cooperation and perseverance of the entire company, which would act as a catalyst in the company’s success.
The following flow chart might help in easy understanding of how an Digital Escrow service works-
The Company’s digital escrow account is opened, and the representatives of the company are given custom access to the digital escrow portal.
The online escrow account is linked with the company’s stocks fund, through which they send ESOPs.
The employee entitled to ESOP has to get their e-KYC for identification.
The employer and the employee arrive at a common point of terms and conditions. It leads to the creation of an e-agreement.
Once the terms of the agreement are fulfilled, and the time is served, the employee is entitled towards claiming those stocks.
After the following steps, the employee can sell their stocks and earn profits, and the employer, on the other hand, gets an appreciation for the value of the Stocks.
The transactions are made with verified parties, which helps in secure payments from both ends.
You will have access to real-time notification on your SMS and e-mail ID.
Payments are done through a certified trusteeship council.
The funds are maintained with RBI licensed banks.
Avail the benefits of creating an escrow account that too instantly.
Thus, sit back and relax when escrow is there to take all your worries related to payments, stocks, wealth, etc.